Department of Economic Development & Tourism

Department of Economic Development & Tourism

Provincial Government of The Western Cape

South Africa

A Draft Outline 10-Year Western CapeTourism Development Framework

Introduction

The following draft Outline 10-Year WCTD Framework has been prepared as a point of departure for discussion by the WCTD Partnership.

It is based on national mandates, policies, strategies, programmes and interventions, the recommendations of:

The Integrated Tourism Development Framework [ITDF], 2001
The three Tourism research papers undertaken as part of the Micro-economic Development Strategy [MEDS] for the Western Cape – Research Papers 2005: Volume B
The Executive Summary of the three Tourism research papers [as extracted from the MEDS Synthesis Report July 2006]
The MEDS Synthesis Report July 2006 – Tourism specific extracts [comments form the Oversight Committee].
The MEDS Tourism Implementation Plan, dated 06 February 2006 [The Department's inputs].
A comprehensive zero-based strategic planning exercise for the Tourism Sector conducted by the Department
The engagement with the public sector and the comparative analysis of existing provincial, metropolitan and district tourism strategies.

About Tourism in the Western Cape

Tourism contributes 9.6 percent [150,000 jobs] to employment and 9.8 percent to the provincial GDP. As such, tourism is the most important sector driving the economy of the Western Cape. Foreign tourist arrivals increased from 810,000 in 2000 to 1,591,153 in 2005 [figures for the first three quarters of 2006 point to an estimated 1,6 million arrivals in 2006] accompanied by a steady increase in yields over the six-year period. 2004 yields were up 15 percent on 2003 figures. Domestic arrivals have also shown significant increases with the Western Cape enjoying an 11 percent share of domestic bednights and 13 percent of domestic tourism revenue. As tourism challenges the hegemony of the traditional sectors, both the private and public sectors see it as providing a basis for future economic growth. This is also a key sector for job and wealth creation.

Format of the WCTD Framework

The format of the WCTD Framework follows the standard form of all MEDS sector and theme strategic implementation plans.

The Framework

1] The Future

This section attempts to develop a measurable vision of where we hope to be in 10 years’ time.

1.1] Vision and desired outcomes

The vision for 2014 is one of a shared, sustainable, growing, labour-absorbing, and globally competitive tourism sector in the Western Cape.

To achieve the vision we need to grow the tourism industry and increase participation within the tourism industry. To do this, the following outcomesmust be met:

Growth outcomes

Being a world class destination in terms of the variety of product offerings, value for money, quality of service, infrastructure and overall excellence;
Being known as a world class destination;
A safe and secure environment for citizens in general and tourists and tourism businesses in particular;
A strong business and government monitoring and intervention capacity to ensure quality of the tourism experience;
Highly successful marketing of the destination both internationally and domestically with target markets being fully aware of the full array of product offerings, including what are currently [2006] non-traditional product offerings;

Strong growth in volumes, length of stay, spend/yield per visitor and significantly more business visitors returning as leisure visitors;

A significant reduction of the impact of seasonality;

New sites, attractions, routes and infrastructure developed in all municipalities which have the potential for the development of a successful local tourism sector;
Widespread use of modern production, service and work organization systems, ICT and other appropriate technology;
Strong capacity to develop a quantitative profile of the industry and its sub-sectors and to measure tourism’s impact upon the economy;
Immediate and easy access to a very wide array of destination information by consumers and potential consumers;
An appropriately skilled and highly productive workforce;
Thriving, globally competitive currently existing [2006] enterprises operating at full potential.

Participation outcomes

New competitive large and medium-sized enterprises;
New competitive small, micro and survivalist enterprises;
A supportive and conducive business environment for enterprises and consumers;
More decent, sustainable jobs and income-earning opportunities;
High levels of economic empowerment in
Management,
Ownership,
Control,
Employment at all levels and in all sub-sectors,
Contracts to supply medium and large business with goods and services and
Representivity in all stages of the value chain;
A regulated business environment;

Significant new sub-sector, niche market and product development, especially in the areas of culture and heritage;
Easy access to current [2006] non-traditional product offerings;
Strong awareness by citizens of their role in tourism;
Access by the poor and isolated among the host community to experience tourism;
Host communities protected effectively in relation to culture and heritage;
Responsible tourism and “pro-poor” tourism accepted as a guiding principle by all stakeholders;
Resources which are critical to a thriving tourism industry appropriately protected for sustainability of the industry;
An appropriately protected environment [including water resource] in the light of increasing tourism densities [for example, golf courses];

Effective and appropriately distributed local tourism development;

Strong municipal tourism development units;
Strong regional tourism organizations [RTOs] and local tourism organizations [[LTOs];
All social partners, the education and training sector and host communities working well together to achieve the tourism sector vision.

The desired outcomes have not been quantified as yet. There is a commitment that in achieving the vision we will show a positive change/shift/movement/benefit in each of the desired outcomes outlined above. The quantification of these desired outcomes, where necessary, will be further defined within the development and implementation of a monitoring and evaluation system.

1.2] The Essential Strategy

We will:

Establish and strengthen the WCTD Partnership.
Assist the WCTD Partnership to contribute fully to the development of an effective WCTD Framework.
Encourage the WCTD Partnership to act in an aligned manner, fully informed by the WCTD Framework.
Encourage all players to increase their funding of the agreed interventions.
Use the FIFA World Cup in 2010 as a focal point to accelerate interventions to make the destination world class so that it can benefit maximally from the global publicity and word-of-mouth promotion and cope with the anticipated rapid increase in tourist volumes in the years immediately after the event.

1.3] Core 10-Year Job and Growth Targets

Average growth in the contribution to GRP by tourism above the national average
100,000 net new jobs
1 500 new enterprises

The base line year for measurement will be 2007.

Growth will be measured in terms of the following indicators:

an increase in the number of visitors to the Western Cape, particularly in the currently defined low season;
an increase in the average length of stay per visitor;
an increase in the average yield/spend per visitor;
an increase in the proportion of visitors who are traveling for business purposes.

Participation will be measured in terms of the following indicators:

achieving the Tourism BEE Scorecard targets in terms of ownership, strategic representation, employment equity, skills development, preferential procurement, enterprise development and social development and industry specific programmesof at provincial level.

1.4] Research

The following further research is envisaged:

Define ways to measure growth in tourism business and the impact of visitors on the economy accurately at provincial and municipal level. Tourism per se does not exist in the Standard Industrial Codes by which activity in other sectors is measured globally. Tourism combines parts of other industries as defined in the codes. The national Department of Environmental Affairs & Tourism [DEAT] has begun a process with the assistance of the UNWTO of establishing what is called a South African tourism satellite account which attempts to define a formula in terms of the standard industrial codes to arrive at as accurate a measure of the size and impact of the South African tourism industry as possible. Our interest is to ensure that all of the data needed in the formula to be able to measure the contribution of tourism to GRP and its impact at provincial and municipal levels is collected and analyzed and reduced to a form which we can use to measure trends and understand the impact of our interventions. The MEDS recommends the development of analytical tools and that we work in conjunction with at least one HEI to achieve this and more.
To commission a study of the likely impact of 2010 on tourism in the WC and what we will need to put in place to benefit maximally.
Technology innovation for the conveying of information and or protection of tourists i.e. Smart cards, satellite tracking etc.
The contribution of the SME (and BEE sector) to the industry – in terms of jobs, profit, turnover, revenue.
We need to understand the Gini co-efficient within tourism businesses – that is, what percentage of businesses is enjoying what percentage of the income (or profit)?
We need the above two benchmarks to know how we are progressing i.e. the BEE Scorecard

A co-ordinated tourism research agenda for the province will be developed.

2] Growth

This section outlines how we will attempt to achieve growth.

2.1] Investment Recruitment

We will:

Identify what investment [both public and private] is required to deliver on the growth targets.
Determine what investment Government and Business should attempt to recruit collectively and what they should attempt to recruit separately;
Develop a mechanism which can produce investment recruitment prospectuses to the standard at which investors can determine an effective IRR;
Shape a business plan for tourism investment recruitment in conjunction with Wesgro;
Develop a plan to recruit investment and loan capital for small, micro and survivalist tourism enterprises.
Develop a Tourism Investment Portfolio with recruited investment and loan capital as viable and lucrative opportunities for new tourism enterprises.

2.2] Increasing Employment

As other measures in this plan are expected to generate a significant number of jobs and employment opportunities, no interventions with the primary purpose of creating schemes will be undertaken.

However, we will assist employers to use labour intensive approaches to maximize jobs and income-earning opportunities.

2.3] Marketing

The Provincial Government of the Western Cape [PGWC] and the City of Cape Town have outsourced the destination marketing function to Cape Town Routes Unlimited [CTRU], a provincial public entity established for that purpose.

2.3.1] Department of Economic Development & Tourism

As provincial lead department we will:

Consider and comment upon CTRU’s annual strategic business plan and funding requests;
Consider and comment upon CTRU’s annual report;
Monitor CTRU’s progress regularly against its mandate contained in the DMO Act;
Ensure that as many players as possible in the WC tourism industry market under the banner of CTRU and that there is as little brand confusion in the market place as possible;
Ensure that all social partners, especially Business, contribute towards the costs of marketing the destination.

2.3.2] Cape Town Routes Unlimited

The provincial public entity will focus on:

Establishing a strong destination brand with regional sub-brands executed at regional level;
Measuring the impact of marketing interventions and campaigns;
Engaging with South African Tourism regarding provincial marketing;
Establishing joint marketing forums and campaigns;
Maximising co-operative marketing opportunities with other sectors like: craft, film, cultural, food, wine, jewellery, fashion, design, etc.
Developing strong research capacity, in partnership with the Department, City of Cape Town and HEIs;
Encouraging a co-ordinated approach to market research across the province; and
Disseminate research information through appropriate publications.

2.4] Infrastructure Development

The development of tourism sites, attractions, routes and infrastructure will be guided by a revision of the Integrated Tourism Development Framework [ITDF] which will be incorporated as a key element within the WCTD Framework. It will prioritize and sequence the rolling out of the proposed developments, specify approximate costs, recommend potential financing partners and recommend a timetable for putting these in place.

We will:

Produce a revised ITDF.

[The following note is included to stimulate thinking about the review of the ITDF. Among many possible additions and changes, Government will propose the development of a False Bay Route between Gordon’s Bay and Cape Point which draws in all the coastal and near-coastal black communities [like Lwandle, Macassar, Khayelitsha, Mitchells Plain, Strandfontein, Vrygrond, Steenberg, Retreat, Grassy Park, Ocean View, Masiphumelele] to participate in an exciting array of new tourism, retail, service and entertainment businesses. Inter alia, this will feature:

Cape cuisine and wine-tasting,
UniqueCape product exhibitions,
Cultural and creative performances;
Live music,
Participation in trek fishing,
Organized beach fun and sports equipment hire,
Participation in ready-made angling opportunities,
Pleasure cruises including a regular tourism-orientated Gordon’s Bay to Simonstown Ferry;
Shark-watching and whale-watching;
Scuba diving;
Fresh fish and fish meal sales points;
Art and high-craft studios-sales points with artists and skilled crafters in attendance and whom visitors can engage in conversation;
Shops, services, restaurants, nightclubs, taverns;
Transport of all shapes and sizes undertaking guided tours along the routes;
A revitalized Muizenberg shopping and restaurant precinct;
A revitalized KalkBay main road with new participants, especially from among the descendents of those who were expelled from the area under the Group Areas Act;
A more tourist-friendly Fish Hoek with inputs from Ocean View and Masiphumelele residents;
New participants in Simonstown, especially from among the descendents of those African and Coloured residents who were expelled from the area under the Group Areas Act;
The South Peninsula Wine Route and so on.]

Implement the revised ITDF according to an agreed rollout plan;
Consider and implement the Tourism Road Signage Framework [which outlines the systems and procedures for the development and erection of tourism signage in the region]. It, too, will be incorporated as a key element within the WCTD Framework.
Play an advocacy role in relation to the provision of efficient and safe public transport and other bulk tourism-enhancing infrastructure. In particular:
Place the need for a rapid link between Cape TownInternationalAirport [CTIA] and the CBD high on the Metropolitan transport agenda and
Motivate for increased infrastructure capacity at CTIA to handle the required increase in traffic in order to deliver on our growth needs.
Motivate for accelerated improvements in infrastructure to through hosting of major events
Support improvements in infrastructure at major tourism attractions and icons e.g. ablution facilities, public parking and bulk infrastructure.
Ensure issues of congestion during peak tourism flows are addressed.
Ensure proper infrastructure development and support along major tourism routes and experiences.
Play an advocacy role in relation to the utilization of public assets [e.g. camping sites, municipal nature reserves, caravan parks] and infrastructure for tourism benefit
Play an advocacy role in relation to the provision of broadband infrastructure and services, a high priority for tourism businesses competitiveness and as a service for tourists.
Utilise the Tourism Blue Chip Investment Portfolio as a means of simultaneously developing these new routes with new black-owned tourism businesses, while investment is being recruited to realize these (empowerment) opportunities.

2.5] New Possible Sub-Sectors, Niches and Products

The diversification of the product is a sine qua non for competitiveness in the tourism industry.

We will:

Research international product offerings to ensure that Provincial product offerings remain at the cutting edge and match constantly expanding demand.
Audit and further research existing sub-sectors and niches, such as: Agri-tourism, Wine tourism, Sport Tourism, Beach Tourism, Youth Travel Market, Cruise tourism, gambling and hospitality industry.
Ensure that products and experiences based on culture, heritage and the natural environment are designed and established to match the demand for new and refined products in these areas.
Integrate Cape-made agricultural and manufactured products into all relevant aspects of the tourism product.
Manage and co-ordinate product development workshops/seminars with relevant role-players and stakeholders.
Ensure that ideas for new businesses based on the research findings are made known to citizens.
Investigate mechanisms for tourism product cluster support and development.
Identify and source funding for product and market developmentinitiatives.
Explore the recommendation around beach tourism recommended by the MEDS researcher.
Maximize co-operative marketing opportunities with other sectors like: craft, film, cultural, creative, food, wine, jewellery, cabinet-making, fashion, design;
And so on.

2.6] There are two tourism specific growth themes that need special mention but do not fit easily into the standard format being used here. These are:

The increase in the number of direct international flights to Cape Town: We will form a permanent sub-committee of the Partnership to do whatever is required to recruit more regular direct flights to Cape Town by foreign airlines. This will include persuading airlines to do so and dealing with all the consequential infrastructure requirements and marketing support needed to make these possible and profitable.
The problem of seasonality: A dedicated permanent sub-committee of the Partnership will be established to deal with this growth issue constantly be developing creative ideas to shorten and, possibly eliminate, the low season. Such ideas include:
Encouraging the public sector to schedule events and conferences during the off-peak period
Encouraging new events in the off-peak period, inter alias through public sector funding criteria for new events

The DED&T will provide anchor funding and expects the private sector to co-fund the initiatives undertaken.